§5214 — Title 12 Banks and Banking | U.S. Code

Summary

Creates the Financial Stability Oversight Board to watch how the Secretary uses the program to buy troubled assets. The Board reviews policies the Secretary and the Office of Financial Stability put in place (like hiring financial agents, which asset types to buy, and how buy-back vehicles are set up). It checks how those actions affect homeowners, financial markets, and taxpayers. The Board can give recommendations to the Secretary and must tell the Special Inspector General for TARP or the U.S. Attorney General if it suspects fraud or wrongdoing. It can also set up a credit review committee to evaluate purchases and the assets bought. The Board has five members: the Chair of the Federal Reserve Board, the Secretary, the Director of the Federal Housing Finance Agency, the Chair of the Securities and Exchange Commission, and the Secretary of Housing and Urban Development. The members (other than the Secretary) choose the Board’s chair. The Board meets 2 weeks after the Secretary first uses the buying power and then meets monthly. It must report at least quarterly to Congress and the Congressional Oversight Panel about its reviews. The Board ends 15 days after the later of (1) the last troubled asset bought under the program is sold or transferred out of government control, or (2) the last insurance contract under the program expires.

Title 12, §5214

Banks and Banking — Source: USLM XML via OLRC

(a)There is established the Financial Stability Oversight Board, which shall be responsible for—

(1)reviewing the exercise of authority under a program developed in accordance with this chapter, including—

(A)policies implemented by the Secretary and the Office of Financial Stability created under section 5211 and 5212 of this title, including the appointment of financial agents, the designation of asset classes to be purchased, and plans for the structure of vehicles used to purchase troubled assets; and

(B)the effect of such actions in assisting American families in preserving home ownership, stabilizing financial markets, and protecting taxpayers;

(2)making recommendations, as appropriate, to the Secretary regarding use of the authority under this chapter; and

(3)reporting any suspected fraud, misrepresentation, or malfeasance to the Special Inspector General for the Troubled Assets Relief Program or the Attorney General of the United States, consistent with section 535(b) of title 28.

(b)The Financial Stability Oversight Board shall be comprised of—

(1)the Chairman of the Board of Governors of the Federal Reserve System;

(2)the Secretary;

(3)the Director of the Federal Housing Finance Agency;

(4)the Chairman of the Securities Exchange Commission; and

(5)the Secretary of Housing and Urban Development.

(c)The chairperson of the Financial Stability Oversight Board shall be elected by the members of the Board from among the members other than the Secretary.

(d)The Financial Stability Oversight Board shall meet 2 weeks after the first exercise of the purchase authority of the Secretary under this chapter, and monthly thereafter.

(e)In addition to the responsibilities described in subsection (a), the Financial Stability Oversight Board shall have the authority to ensure that the policies implemented by the Secretary are—

(1)in accordance with the purposes of this chapter;

(2)in the economic interests of the United States; and

(3)consistent with protecting taxpayers, in accordance with section 5223(a) of this title.

(f)The Financial Stability Oversight Board may appoint a credit review committee for the purpose of evaluating the exercise of the purchase authority provided under this chapter and the assets acquired through the exercise of such authority, as the Financial Stability Oversight Board determines appropriate.

(g)The Financial Stability Oversight Board shall report to the appropriate committees of Congress and the Congressional Oversight Panel established under section 5233 of this title, not less frequently than quarterly, on the matters described under subsection (a)(1).

(h)The Financial Stability Oversight Board, and its authority under this section, shall terminate on the expiration of the 15-day period beginning upon the later of—

(1)the date that the last troubled asset acquired by the Secretary under section 5211 of this title has been sold or transferred out of the ownership or control of the Federal Government; or

(2)the date of expiration of the last insurance contract issued under section 5212 of this title.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in text, was in the original “this Act” and was translated as reading “this division”, meaning div. A of Pub. L. 110–343, Oct. 3, 2008, 122 Stat. 3765, known as the Emergency Economic Stabilization Act of 2008, to reflect the probable intent of Congress. For complete classification of division A to the Code, see

Short Title

note set out under section 5201 of this title and Tables.

§5214 Financial Stability Oversight Board